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Craig Dwight has been the CEO of Horizon Bancorp, Inc. (NASDAQ:HBNC) since 2001. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Craig Dwight's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Horizon Bancorp, Inc. has a market cap of US$734m, and is paying total annual CEO compensation of US$1.2m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$540k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.7m.
Most shareholders would consider it a positive that Craig Dwight takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Horizon Bancorp, below.
Is Horizon Bancorp, Inc. Growing?
Over the last three years Horizon Bancorp, Inc. has grown its earnings per share (EPS) by an average of 20% per year (using a line of best fit). In the last year, its revenue is up 11%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Horizon Bancorp, Inc. Been A Good Investment?
I think that the total shareholder return of 55%, over three years, would leave most Horizon Bancorp, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It appears that Horizon Bancorp, Inc. remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Craig Dwight deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Horizon Bancorp (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.